“Rule of Many” Ends 1871 Hiring Practice
The Trump administration has been upfront about changing the nature of the federal government from one that is focused on seniority and preventing change to a government that strives for innovation and efficiency.
The new Director for the Office of Personnel Management (OPM) recently wrote:
[T]he Carter Administration tried to overhaul the federal civil service – a topic that is front and center in today’s politics. Among other things, the 1978 Civil Service Reform Act sponsored by the Carter Administration established the Office of Personnel Management – that I now have the privilege to oversee – and introduced several reforms aimed at reducing government inefficiencies and increasing accountability of federal personnel. The administration’s track record was mixed at best, in part due to resistance from labor unions and from the federal employees themselves.
While this approach is evident in the administration’s efforts to mitigate the impact of federal employee unions, it also applies to numerous other areas within federal human resources.
Here is a prime example of how this change in philosophy can play out in practice.
The Office of Personnel Management (OPM) has issued its final rule implementing the “rule of many,” a sweeping hiring reform authorized by the Fiscal Year 2019 National Defense Authorization Act.
The rule, published in the Federal Register on September 8, 2025, eliminates the long-standing “rule of three” that restricted hiring managers to selecting from the top three candidates on a ranked list. In its place, agencies may now consider a “sufficient number” of top candidates, using a cut-off score or other method defined by OPM.
The “rule of three” in federal hiring (the practice, not the name) dates back to August 1871, when it was established by a decision of the U.S. Attorney General during the administration of President Ulysses S. Grant. It became a long-standing cornerstone of civil service reform, requiring hiring managers to select from the top three candidates referred by an examining office.
The rule of three was designed to uphold merit-based hiring while also integrating veterans’ preference. Over time, it faced criticism for being too restrictive. By 2010, the Obama administration began shifting toward category rating, allowing managers to choose from a broader pool of top-tier candidates.
In recent years, legislation and policy changes have further loosened the grip of the rule, with some agencies now using more flexible systems. The change applies across both competitive and excepted service hiring and must be fully implemented within 180 days of publication.
For decades, federal hiring managers were restricted to selecting candidates only from the top three names on a ranked certificate of eligibles. Under the new rule, agencies will be able to consider a “sufficient number” of candidates from the top of the list—no fewer than three—using a cut-off score or other criteria established by OPM. This expanded pool of candidates allows hiring officials greater discretion while still preserving merit-based principles.
The rule also codifies the “three considerations” practice, which allows an agency to remove a candidate from future consideration after being reviewed and passed over three times for the same position. Under the “rule of many,” this will now apply beginning with the fourth selection made from a given certificate.
Broader Candidate Pools and More Competition
Previously, federal employees competing for promotions had a structural advantage if they consistently ranked among the top three candidates. The new rule expands the pool, allowing managers to choose from a wider slate of eligible candidates.
While this is designed to improve hiring flexibility and workforce quality, it also increases competition for internal candidates who are federal employees and seeking promotions.
Retirement Impact: Why Promotions Matter More Than Ever
The financial effects of this rule will be most visible in retirement planning.
Federal employees’ pensions are based on their “high-three” average salary—the average of their highest-paid 36 consecutive months of service. Promotions in the final years of a career often determine how much an employee’s annuity will grow in future years.
Whether this rule will have a substantial impact on federal employee annuity payments remains to be seen. It is, however, a possible impact of the new rule for the following reasons:
- Slower Promotion Rates: With more candidates under consideration, the odds of securing late-career promotions may decrease. A delay of one or two years in advancing to a higher grade can result in a permanent reduction of a retiree’s pension. For example, if an employee misses out on a GS-14 promotion worth $10,000 annually for their last three years, their lifetime pension could be reduced by $3,000–$5,000 per year depending on their retirement system (FERS or CSRS). Over a 20-year retirement, that could mean $60,000 to $100,000 in lost income.
- Greater Pay Compression: The broader selection pool could favor external candidates with specialized skills, limiting opportunities for long-serving employees to move upward. This makes it more difficult for career federal workers to advance to a higher final salary tier before retirement.
- Increased Pressure to Time Retirement Strategically: Employees approaching retirement age may delay leaving the workforce in hopes of securing a final promotion to boost their high-three, but the added competition may make such a strategy less reliable than under the old system.
Workforce Benefits and Tradeoffs
Supporters argue that the rule will help agencies attract more skilled employees and enhance overall workforce performance, benefiting both employees and the public. For federal employees nearing retirement, the financial risk is real: the broader hiring flexibility could make climbing the career ladder slower and less predictable, with lasting consequences for retirement income.
Bottom Line
The “rule of many” gives agencies more discretion and flexibility in hiring. It also creates a tougher, less predictable promotion environment.
For federal employees within 5–10 years of retirement, the rule could mean lower annuities if career advancement slows. Careful planning—and in some cases, adjusted expectations—will be essential for employees who were counting on late-career promotions to maximize their retirement income.
